Technopolis - Interim report (Q1 and Q3)

Technopolis Group Interim Report January 1 – September 30, 2015

TECHNOPOLIS PLC            INTERIM REPORT               October 29, 2015 at
9:00 a.m. 

Technopolis Group Interim Report January 1 - September 30, 2015

Q3 Occupancy and Fair Values Improving

- Net sales rose to EUR 128.9 (120.3) million, up 7.1%
- EBITDA rose to EUR 72.9 (65.3) million, up 11.7%
- Financial occupancy rate rose to 94.5% (93.5%)
- Earnings per share rose to EUR 0.24 (0.14)
- Direct result (EPRA) EUR 38.8 (39.2) million, down 1.0%
- Direct result per share (EPRA) EUR 0.37 (0.37)
- Net asset value per share (EPRA) EUR 4.57 (4.89)


                                        7-9/  7-9/    1-9/   1-9/  1-12/
Key Indicators                          2015  2014    2015   2014   2014
Net sales, EUR million                  39.8  40.3   128.9  120.3  161.7
------------------------------------------------------------------------
EBITDA, EUR million                     22.7  22.7    72.9   65.3   87.2
Operating profit, EUR million           24.4  16.0    63.1   46.4   42.9
Net result for the period, EUR million  11.9   8.2    32.8   25.0   -3.0
Earnings/share EUR                      0.07  0.06    0.24   0.14  -0.15
Cash flow from operations/share, EUR                  0.43   0.47   0.63
Equity ratio, %                                       38.2   40.6   38.5
Equity/share, EUR                                     4.25   4.60   4.17
------------------------------------------------------------------------
------------------------------------------------------------------------
                                        7-9/  7-9/    1-9/   1-9/  1-12/
EPRA-based Key Indicators               2015  2014    2015   2014   2014
------------------------------------------------------------------------
Direct result, EUR million              11.4  14.1    38.8   39.2   55.9
Direct result/share, EUR                0.11  0.13    0.37   0.37   0.53
Net asset value/share, EUR                            4.57   4.89   4.52
Net rental yield, %                                    7.7    7.3    7.5
Financial occupancy rate, %                         94.5*)   93.5   94.7
------------------------------------------------------------------------

*) 18,700 m² under renovation and 12,400 m² of unoccupied but rented space

The EPRA-based (European Public Real Estate Association) direct result does not
include unrealized exchange rate gains, losses or fair value changes. 

Keith Silverang, CEO:

“The third quarter did not bring any dramatic change to the trend lines already
visible in our operational performance in the first half of 2015. Financial
occupancy has now reached 94.5% as expected. Fair values also increased by EUR
4.1 million in the third quarter. 

Cumulative net sales growth in excess of 7% and EBITDA growth of almost 12%
over 2014 is robust, but much of that growth came from payments (EUR 5.4
million) related to the premature termination of the Oulu leases reported in
Q2. If we exclude these non-recurring items net sales and EBITDA grew 3.5% and
5.1% respectively, and with domestic inflation running almost flat, most of the
EBITDA growth came from rising cost-effectiveness and the high-occupancy
completion of the Vantaa G-building (occupancy 97.0%). 

Of particular interest is the high occupancy of all our international units and
the robust growth that our Tallinn and Vilnius units have demonstrated. Our
Oslo unit has also strongly outperformed its market and operations in St.
Petersburg (occupancy 99.8%) have continued to perform very well, despite the
uncertainty related to the Russian economy. 

In Finland business conditions remain challenging with no end in sight. Despite
this, nearly all of our business units have outperformed the market. The HMA,
Tampere, Kuopio and Jyväskylä units have all generated strong occupancy, sales
and earnings. Oulu has proven resilient, and we are confident that, while it
may take some time, we will be able to resell the remaining 11,000 square
meters released from the agreements prematurely terminated this year. 

For both our international and domestic units, hands-on customer care has been
a crucial ingredient in successful operations. Direct sales and customer care,
in combination with flexible facilities, targeted renovation investments and
well-integrated service layering have enhanced customer satisfaction and
created stickiness. The result is above-market occupancy and robust service
sales growth (18% year-on-year so far). Customers need and want less square
meters, more flexibility and more motivating working environments. We will
embrace this trend because it is perfectly aligned with our concept. 

Our top priority is to acquire good quality campuses in Scandinavian markets
while reducing domestic exposure through joint ventures and the selective
divestiture of individual assets and campuses. We are actively pursuing campus
acquisition opportunities in accordance with the Group's strategic targets. 

On the financial side the company will continue using its excess liquidity to
reduce loan-to-value (LTV) this autumn, while maintaining sufficient liquidity
to execute any investment opportunities that may arise. With fair values
increasing and debt repayments continuing, we expect LTV to decline by the
year-end, assuming other variables remain unchanged.” 

Full version of Technopolis Plc's interim report for January-September, 2015
attached. 

Additional information:
Keith Silverang
CEO
Tel. +358 40 566 7785

Distribution:
NASDAQ OMX Helsinki, main news media, www.technopolis.fi

About Technopolis:
Technopolis provides the best addresses for companies to operate and succeed in
five countries in the Nordic-Baltic region. The company develops, owns and
operates a chain of 20 smart business parks that combine services with flexible
and modern office space. The company's core value is to continuously exceed
customer expectations by providing outstanding solutions to 1,700 companies and
their 47,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The
Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.

Priedai:

Technopolis interim report Q3 2015.pdf